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Travelodge in tie-in with resurgent pub sector in recruitment

Budget hotel chain Travelodge is targeting a £100 million, 36-site expansion programme in partnership with the UK’s resurgent pub companies by 2015 and it is expected this could create 550 new jobs in the UK.

Already co-located with pub companies on 15 bespoke developments across the UK, Travelodge is now actively working with Greene King, JW Lees, Marston's, Mitchells & Butlers (M&B) and JD Wetherspoons to find further development opportunities across the country.

In recognition of the recent upsurge in activity from the pub sector, Travelodge has for the first time devised a bespoke development strategy to partner with a wide range of pub companies.

By working together, the hotel brand can capitalise upon the opportunities that the renewed development activity of the pub companies provides.

The expansion plans of the pub companies come on the back of consumers continuing to eat out despite the economic conditions. For instance, Ralph Findley, chief executive of pub chain Marston's, announced, when giving its recent results: "Some 70% of income is people coming into dine." Also, pub retailer Greene King's chief executive, Rooney Anand, said recently: "Food is a particular driver of growth. Food sales are now 39% of total revenue… that figure will continue to grow."

Greene King is seeking to add 200 pubs to its estate by 2015 in order to reach 1,100 outlets. Pub brands include Hungry Horse and Scottish brewery chain Belhaven.

Marston's will add to its 500 sites by opening 20 pubs in 2011 and 25 in 2012. Brands include 'Pitcher and Piano' and its own Marston's Inns.

JD Wetherspoon has committed to opening 50 sites a year for the next decade.

Pub company Mitchells & Butlers (M&B) has stated it will open 50 sites this year and 70 hotels in 2012. With 15 brands, including Harvester, Toby Carvery and All Bar One, M&B has 1,600 restaurants and pubs in the UK.

Paul Harvey, Travelodge managing director for development, said: "The pub companies have noticeably stepped up their development plans over recent months and in many parts of the country their target locations correspond with ours.

"We have been contacted by all the major players in the market and are now proactively seeking out sites with them. A combined hotel/pub development is attractive to banks and funders, making the development process a lot quicker than it otherwise can be."

Brigid Simmonds, chief executive of the British Beer & Pub Association, added: "While pubs have faced tough times in recent years, this is a great example of how they are fighting back. Pubs are perfectly placed to provide the hospitality at sites next to hotels. Pubs now serve more than one billion meals each year and are diversifying in many ways to serve their local community. Innovation such as this is a key ingredient in making a success of new pub openings - and it's a success story we should be highlighting."

The initiative also follows the successful integration by Travelodge of 52 Innkeepers Lodge Hotels that the company acquired in July 2010, all of which have an M&B pub on site.

In the past six months, Travelodge has exchanged on two properties with the pub companies in Kidderminster and Glossop.